Report submitted to revenue secretary for changes in GST

www.carajput.com; GST

REPORT SUBMITTED BY GST LAW PANEL TO REVENUE SECRETARY REGARDING CHANGES IN GST ACT

GST LAW PANEL has given more than 100 recommendations but some of them are as follows:

  • Reverse Charge Mechanism should be abolished
  • E-Way bill should be deferred till 2019 and efforts may be made to bring some alternate method in place of E-Way Bill.
  • Inter-state transactions should be allowed in Composition Scheme.
  • 1% tax in Composition for traders, manufacturers and restaurants.
  • Refund process should be automated
  • In place of all other returns there should be a single consolidated return.
  • Return process should be simplified and rationalised.
  • The ITC should be released within same month. Matching and adjustment may be done later.
  • FORM 3B is to be continued till March 2018
  • Return should be filed quarterly but tax may be paid monthly.
  • Doing away with HSN code in the invoice for easier return filing.
  • Classification of items should be such that the raw material and finished product are in the same slab. This would make refunds process easier.
  • Exempted or Nil rated goods should not be counted in aggregate turnover.
  • All job work should be taxed@5%
  • Service providers should also be allowed to take composition schemes
  • Allowing revision in returns.
  • Formation of a National Advance Ruling Authority
  • Search/raid only if Authority is having credible evidence against a person and that too only with orders of Commissioner.
  • Scrutiny of returns should be 0.5% to 1% only.
  • Registration of persons even after July should be granted registration with retrospective effect from 1st July 2017
  • Purchasers can claim ITC provided have made payment of tax and received the goods. If the supplier does not pay tax the purchaser cannot be asked to reverse the credit.
  • GST on interest charged for late payment should not be charged.
  • The formula of deemed credit to weavers and fabric traders on the stock was held as of 30.6.2017.
  • No requirement of reversal of VAT credit in the absence of Form C, F, H.
  • ITC on business expenses like, food, insurance, the gift to employees, business assets
  • Consolidated debit note instead of invoice-wise debit note.
  • Threshold exemption of Rs.20lakhs to all types of commission agents
  • The place of supply in many cases should be the registered place of the recipient in the case of B2B transactions.
  • Withdrawal of Form ITC-4.
  • Many relaxations to the casual taxable person.
  • Common tax pool for payment of tax.
  • No restrictions on refund of accumulated credit.
  • Premises of assessee cannot be visited casually by the officers, prior written permission of the Commissioner required
  • No penalty in case of the wrong classification
  • No denial of credit on the purchases made from 1.7.2017 till the date of registration for textile traders and another segment as well.

 

​The panel received more than 700 representations on problems faced by industry over return filing, the E-way bill, Input tax credit, and Exports.

All the above Recommendations are some major out of many more Recommendations of A 6 -Member Advisory Group set up by Ministry of Finance on 2nd November 2017 and Group was asked to submit its report by 30th November on proposed changes in GST Act.

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